The month of May brings several important tax obligations and legislative updates that affect both individuals and companies in Romania. To avoid penalties or business interruptions, it's essential to stay informed about the deadlines, procedures, and new rules. Below is a detailed checklist of the most relevant fiscal responsibilities for this period:
 
  1. Submission of the Annual Income Tax Return  – Deadline: May 26, 2025
The Annual Income Tax Return must be filed by all individuals who earned non-salary income in 2024, either from Romania or abroad. The form is also used to estimate income for 2025 and calculate the social contributions due for the current year.
 
What must be declared?
  • income from rental properties, dividends, and interest;
     
  • income from freelancing, self-employment, or copyright/licensing;
     
  • income from digital platforms like YouTube, Fiverr, OnlyFans, Etsy, etc.;
     
  • foreign income – including earnings deposited into international accounts.
     
Important: The Romanian tax authority (ANAF) has access to international income data via global information exchange agreements. Failing to declare such income may result in fines and tax audits.
 
Practical example: Andreea is a marketing freelancer who earned €6,500 in 2024 from clients in France and Germany. She must declare this income by May 26, 2025, and pay the appropriate income tax and social contributions in Romania to avoid penalties and maintain her compliant tax status.
 
  1. Background music license – UPFR | Tariff Increase Starting May 1, 2025
     
If you operate a public space where background music is played (via radio, TV, or playlists), you're legally required to have an active UPFR license (Romanian Phonogram Producers Association).
 
Who must comply?
  • restaurants, cafés, and bars;
     
  • retail stores, pharmacies, and shopping centers;
     
  • hotels, guesthouses, spas;
     
  • waiting rooms, clinics, and reception areas.
     
Starting May 1, 2025, UPFR tariffs have increased. Failure to hold a valid license may result in fines if inspected.
 Tip: Check the validity of your license and renew it if necessary to stay compliant.
 
  1. Redirection of corporate income tax via Form 177 – Deadline: June 25, 2025
     
If your company didn’t fully use the deductible sponsorship cap in 2024, you can still redirect a portion of the income tax already paid by completing Form 177.
 
Required documents:
  • a signed sponsorship contract;
     
  • completed Form 177 submitted to ANAF;
     
  • proof that the beneficiary NGO or institution is registered in the official ANAF registry at the time of the sponsorship.
     
Benefit: Redirection involves no extra cost – you’re reallocating an amount you’ve already paid to support a cause of your choice (social, educational, medical, etc.).
 
  1. Checking the validity of headquarters and work point contracts
     
If the rental or loan contract (comodat) for your registered office or work points has expired or is about to expire, your company could be declared fiscally inactive. This can lead to significant issues, such as VAT code suspension, frozen treasury accounts, or losing business partners.
What to do:
  • check the expiration dates of all relevant contracts;
     
  • if changes are needed, file Form 700 to update your fiscal profile with ANAF;
     
  • verify your company’s status in the ANAF Registry of Active Taxpayers (available online).
     
May is a key month for tax compliance. From submitting the Annual Tax Return and renewing licenses to optimizing your corporate tax through sponsorships – each action helps strengthen your business's fiscal health and avoid unnecessary risks.
 
☎️  Need help navigating all this?
Reach out to the Financess team for tailored guidance and support: 
📞 (+40) 749 097 969 
📧 contact@financess.ro